SB316 Alabama 2017 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2017

Title

Counties and municipalities, collection of local taxes by Revenue Dept., interest rate by general law, delivery licenses, exemption of small deliveries, provision for increases deleted, issuance fee, Secs. 11-3-11.3, 11-51-194, 11-51-208, 40-23-241 am'd.

Summary

SB316 updates how Alabama counties and municipalities collect local taxes, creates a delivery-license framework for small deliveries, and standardizes electronic filing and interest rules for tax payments.

What This Bill Does

It lets the Department of Revenue collect county and municipal taxes on behalf of the local governments, with collection costs capped at 2% and distributions paid to the counties or municipalities. It creates a delivery license system for deliveries into municipalities, including a base license fee up to $100, an issuance fee up to $10, exemptions for small deliveries, and a $75,000 license-year gross receipts limit with rules on when licenses are required. It requires the ONE SPOT electronic filing/remittance system for local taxes and aligns delinquent interest rules with general law, while allowing self-administered counties and municipalities to elect interest on delinquencies and refunds.

Who It Affects

• Local governments (counties and municipalities) that levy local taxes and will have those taxes collected by the Department of Revenue, with defined cost caps and reporting requirements.
• Businesses and taxpayers subject to local taxes, who may need to obtain delivery licenses (if they deliver into municipalities) and will use the ONE SPOT system for electronic filing and remittance.

Key Provisions

• Amends 11-3-11.3 and 11-51-208 to authorize the Department of Revenue to collect county and municipal taxes, with actual collection costs not exceeding 2% of the amount collected and with funds distributed to the respective local governments.
• Amends 11-3-11.3, 11-51-208, and 11-51-194 to establish a delivery license regime: maximum base license of $100, possible increases under uniform license rules, optional decal fee, issuance fee up to $10, and a $75,000 annual gross receipts threshold; exemptions for small deliveries and common carriers; penalties for failing to meet criteria; nexus considerations.
• Amends 40-23-241 to require ONE SPOT as the system for filing and remittance of state and local taxes, with direct remittance to local accounts, and permits local jurisdictions to apply 1% monthly interest or their own discount rates; penalties and interest follow state law with local waivers handled by the local jurisdiction.
• Sets interest conventions: delinquencies collected by the Department of Revenue follow general-law interest (40-1-44); self-administered counties and municipalities may elect to assess interest on delinquencies and to pay interest on refunds, typically at 1% per month unless otherwise specified by local ordinance.
• Effective date: the act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties